Geological and Geophysical Surveys
For many years, the State of Alaska, Department of Natural Resources, Division of Geological and Geophysical Surveys (DGGS) has provided detailed geological maps of some of the more highly mineralized areas to supplement the larger-scale, less detailed Mineral Resource Assessment maps produced by the U.S. Geological Survey. Since 1993, the DGGS has invested in modern airborne geophysical surveys, using helicopters as the platform for the magnetic and electromagnetic instruments. This program continued through 1997, with over a dozen mining districts being flown to date. The completion of these surveys is greatly anticipated and have resulted in better understanding of the geology and mineralization with an increase in exploration activity. Survey results are available from the Alaska Division of Geological and Geophysical Surveys in Fairbanks, website: http://www.dggs.dnr.state.ak.us, and e-mail: dggspubs@dnr.state.ak.us.

Exploration Tax Incentives
In 1995, Governor Knowles signed the Alaska Exploration Incentives Act, which will allow deduction of up to $20 million of qualified costs from taxes and royalties over a 15-year period for new mines. The exploration credits are site specific and may be assigned to successors in interest, and can continue to be earned up to receipt of the final operating permit. To facilitate record keeping the credits must be certified annually, with all submitted relevant data kept confidential for three years.

Permit and Financial Assistance
The state will also assist mining companies in permitting a major facility through the Division of Mining, Land and Water Management, the state can also participate though the Alaska Industrial Development and Export Authority (AIDEA) in major infrastructure developments.

Alaska's Advantages

Alaska offers numerous advantages for energy development:

• Alaska is centrally located to serve the entire Pacific Rim.
• Alaska is well positioned to serve the Canadian and U.S. west coasts.
• Alaska is positioned to serve European markets by the Northern Sea Route. Specialty armored freighters are able to routinely transit the polar passage during the summer months.
• Alaska offers a stable political environment and a well-trained and educated work force.
• Alaska has government participation through tax credits and the provision of infrastructure.

Equity Partnering

The State of Alaska, through AIDEA, is able to participate as an equity partner in minerals development. In recent years AIDEA has financed the transportation system, including the 52-mile road and upgrades to the port that serves the Red Dog Mine in northwest Alaska. AIDEA financed the remodeling and upgrading of the Skagway ore terminal that serves Yukon base metal mines through the Alaska port city of Skagway. Additionally, AIDEA has assumed an equity interest in Alaska's only export coal terminal located in Seward. In all instances the state recovers its investment and a modest rate of return through user fees negotiated with the mineral company using the facilities.